Investing in disaster-resilient infrastructure can reduce future GDP losses from climate-related disasters by half, according to new modelling from the Coalition for Disaster Resilient Infrastructure (CDRI) launched Wednesday at the COP30 climate summit.
The research reveals a stark “resilience deficit,” with the true economic cost of infrastructure failure exceeding the immediate physical damage by more than seven times. This is because disruptions to transport, power, and water systems cripple supply chains and business activity, creating a massive hidden cost on top of the initial destruction.
The report, which analyzed eight climate-vulnerous countries including Bangladesh, the Philippines, and Kenya, found that infrastructure disruptions account for a staggering 80% of all disaster-related losses. Without urgent action, annual GDP losses in some nations could surge to over 14% by 2050.
“Resilient infrastructure is a catalyst for sustainable growth,” said Amit Prothi, Director General of CDRI. “Every dollar invested in resilience pays for itself many times over, protecting lives, livelihoods, and public finances.”
The study makes a powerful economic case for upfront investment, showing that building resilience into infrastructure adds only 5-15% to project costs but delivers returns that are seven to twelve times greater. Furthermore, a rapid, four-year recovery after a disaster can limit long-term GDP losses to just over 2%, compared to losses of more than 7% with a slower response.
Despite these compelling benefits, a parallel survey of business leaders revealed a significant funding gap: 61% of infrastructure companies allocate less than 10% of their budgets to resilience, with a quarter allocating nothing at all.
With most of the infrastructure needed by 2050 yet to be built, the 61-member Coalition is issuing a global call to action for governments, financial institutions, and the private sector to make resilience a non-negotiable standard for all future development.
TunisianMonitorOnline (Douha Essaafi)
